TOKYO, May 19 (Pulse News Wire) – Hakuto CO.,LTD. (7433.T) announced today that its board of directors has approved the introduction of the Trust-Type Employee Holding Shares Incentive Plan (E-Ship®).
The plan aims to enhance long-term corporate value through incentives for employees who join the Hakuto Employee Holding Association. Under the plan, the company will set up a trust account managed by Nomura Trust Bank, which will acquire approximately 1.2 million shares of Hakuto stock over the next two years and ten months via loans from financial institutions. These shares will subsequently be sold back to participating employees at market prices, with any accumulated profits distributed among eligible beneficiaries upon the trust's termination on March 28, 2029. Should there be losses due to falling share prices, Hakuto will cover the remaining debt. Additionally, Hakuto decided to dispose of ¥1.2 million of its currently held treasury shares (as of March 31, 2026) in a single transaction to fund the initial setup of the E-Ship® trust.
Details of the disposal can be found in the accompanying notice titled “Notice Regarding Disposal of Treasury Shares Through Third-Party Allocation Due to Introduction of the Trust-Type Employee Holding Shares Incentive Plan (E-Ship®).” The E-Ship® trust operates under several key mechanisms: - It sets up a trust account benefiting qualified members of the employee holding association. - Loans are taken out from banks to purchase shares, with Hakuto providing guarantees and receiving fees. - Acquired shares are gradually sold back to the association members based on predetermined conditions. - Proceeds from sales and dividends are used to repay loans. - Voting rights associated with the shares are exercised according to instructions from designated trustees.
- Any residual assets are distributed to qualified beneficiaries, while any outstanding debts are settled by Hakuto based on guarantee agreements.
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